Taiwan's economy is running hot on AI demand, and forecasters just raised this year's growth outlook again — good news for exporters and investors, though the pace is expected to cool sharply next year.

• Taiwan's 2026 growth forecast was lifted to 11.6%, up from 10.1%, on booming AI infrastructure spending.
• The first 2027 estimate came in at 5.1% — still solid, but a big step down from this year's unusually high base.
• Growth is being driven by companies adopting AI and cloud providers still raising their capital spending budgets.
• Taiwan's central bank is expected to leave interest rates unchanged in September, watching inflation and the Fed before moving.
• The main risks: the Middle East conflict pushing oil and inflation higher, new US tariffs and trade probes, and whether the AI spending wave holds up.

Outlook: Growth should stay strong through the end of the year, with stocks supported by room for company profits to be revised higher — as long as AI demand does not crack.